Organizational models in the Sicilian ornamental plant industry: An empirical analysis based on transaction cost theory

Abstract

The process of market globalization has led to a redefinition of business models in order to compete in domestic and international markets. In the current competitive scenario, the survival of companies is linked to their ability to reduce or contain the sum of both production and transaction costs. The aim of this paper is to identify the existence of similar organizational models of a sample of Sicilian firms active in the Ornamental Plants sector based on those transaction costs that they support in relation to the sales channel and the other human and firm characteristics. Using a clustering procedure, we identified four well-distinct organizational models whose formation is influenced not only by the physical and economic size of firms but also by the transaction costs experimented. A reconsideration of these models, both in cooperatives and in small firms managed by young entrepreneurs, is needed.